The use of check writing and cashing has grown ever so common. The continuous increase in the transmission of information has lowered the need to constantly carry cash and has, in effect, heightened the use of writing and cashing checks, providing an easy way for a customer or check writer to make a purchase without visiting a bank or an electronic teller.
Likewise, with the wide use of checks, merchants have a growing need to determine the collectability of checks in order to approve or deny checks written. Merchants, e.g., grocers, face a daily challenge of dealing with two competing interests. Grocers have an interest of taking care of their customers whom are shopping for essentials of living, e.g., food. Grocers also have an interest of protecting themselves from negative or fraudulent check writers.
Merchants have an interest of keeping their valued customers satisfied. For example, grocers are in the business in which the majority of the same customers typically return on a continual basis, e.g., weekly. Most of the customers are local residents. Generally, such customers are “good” customers who write checks that typically clear at the bank.
Even at times when occasionally such customers write checks that are returned to the merchant for insufficient funds, the funds are typically collected at a date shortly thereafter. In this way, merchants are cooperative and accommodating to such customers whom may have written an occasional check that has been returned for insufficient funds. One reason is that merchants realize that some of their customers may not at the time have the funds to purchase, for example, food, an obvious essential part of living. Merchants also realize that at a date shortly thereafter, such customers more than likely will have the funds to clear their checks. Thus, merchants refer to these types of customers as collectible customers.
As stated above, merchants also have the interest in protecting themselves from negative and fraudulent check writers writing checks that more than likely will be returned for insufficient funds. Such “bad” or fraudulent check writers typically write checks that are not collectible. Thus, merchants refer to these types of customers are non-collectible customers. Merchants continually pursue ways which effectively distinguish collectible from non-collectible customers.
Current systems implemented to perform check and customer approval are adequate; however, current systems may be improved. One current system generally includes a computer database having a distributed negative file containing names and/or identification of check writers whom have been labeled as “negative check writers” based on historical check writing information. The distributed negative file typically is provided by check acceptance companies such as TeleCheck Services, Inc. Typically, merchants use the distributed negative file as needed for check verification purposes.
The distributed negative files are created to allow the merchant to determine whether to approve or deny a check from a check writer. The distributed negative file is created, for example, by TeleCheck, through a check/check writer analysis prior to a transaction. The distributed negative file is a file including names of a plurality of check writers whom have historical negative information known to check acceptance companies. For example, the distributed negative file may include names of check writers having returned checks or outstanding check debt.
In use, the distributed negative file is configured in a computer database which may be locally disposed within a store of the merchant. Cashier stations may then access via computer line the distributed negative file as needed. Typically, a cashier simply types in or swipes a check through in order to access the distributed negative file. If the customer's name, bank account number, or identification is included within the distributed negative file, then the customer is typically denied.
However, because the distributed negative file typically includes all negative historical check writing information of a plurality of check writers, some “good” customers may be denied from writing checks. This is undesirable for the merchant and especially for the “good” customer. The merchant loses a purchase which more than likely would have been collected shortly thereafter, and the customer is obviously not allowed to write a check. Additionally, the merchant may suffer a loss of business from that particular customer, due to this incident. Thus, this is undesirable.
What is needed is an improved system for determining the collectability of a check writer such that collectible customers may be distinguished from non-collectible or least collectible customers.
What is also needed is an improved system for determining collectability of a check writer from a database including information of the check writer for check writing approval or denial.